Tax implications of SGB bought from the secondary market

Bonds
21

You are wrong. Kindly go through S.No. 28 in rbi.org.in FAQ. Only original allottee will get capital gain tax benift if he retain the bond till maturity of 8 years. All other investors will get only indexation benefit and has to pay long term tax of 12.5% after indexation

22

he has posted the screenshot of the same section

2 Likes
23

I am not able rightly to apprehend the kind of confusion of ideas that could provoke such an interpretation of S.No.28.

(Paraphrasing Mr. Babbage.)

1 Like
24

There is no confusion.

  • Capital gains (if any) upon redemption on maturity are tax-exempt.
  • Capital gains (if any) upon sale i.e. transfer of bond are taxed.

What remains to be seen is
whether there are any other subsequent notifications/circulars on the topic.
(Since the last update on that RBI SGB FAQ page in from 2019).

25

I fully agree; the confusion is baffling, is what I meant to convey!

1 Like
26

The article in the financial express(lastly updated on Nov 2023) here https://www.financialexpress.com/money/dhanteras-gold-rush-is-it-wise-to-buy-sovereign-gold-bonds-from-secondary-market-critical-points-explained-3303125/
explains clearly on tax implications of buying SGBs from secondary market section lastly. Please refer this.

27

That is just an article, not gospel. The other person has interpreted RBIs FAQ differently and is free to do so until RBI stops using ambiguous language